Edible Arrangements LLC V. 1-800-Flowers Inc
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Case 1:20-cv-02405-SCJ Document 1 Filed 06/04/20 Page 1 of 37 IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF GEORGIA ATLANTA DIVISION EDIBLE IP, LLC; and EDIBLE ARRANGEMENTS LLC; Plaintiffs, CIVIL ACTION NO: ___________ v. JURY TRIAL DEMANDED 1-800-FLOWERS.COM, INC.; and 800- FLOWERS, INC., Defendants. COMPLAINT Plaintiffs Edible Arrangements LLC and Edible, IP LLC (collectively the “Edible Plaintiffs”) have valuable intellectual property including trademarks that distinguish their famous cut fruit products designed to look like flowers. Defendants 1-800-Flowers.com, Inc and 800-Flowers, Inc. (collectively the “18F Defendants”) have repeatedly infringed on those trademarks in internet advertising in a deliberate attempt to confuse the public and damage the Edible Plaintiffs’ businesses. 1824558.1 Case 1:20-cv-02405-SCJ Document 1 Filed 06/04/20 Page 2 of 37 This complaint seeks redress for these wrongs. Parties 1. Plaintiff Edible IP, LLC is a Connecticut limited liability company whose member is Edible Brands, LLC, a Delaware Company. Edible IP’s principal place of business is in Fulton County, Georgia at 980 Hammond Drive, Atlanta GA 30328. Edible IP owns all of the trademarks, trade names, common law intellectual property, and other goodwill associated with the brand “Edible Arrangements.” As discussed in more detail below, Edible IP licenses this property to Edible Arrangements LLC and other entities that conduct business using that name. 2. Plaintiff Edible Arrangements LLC is a Delaware limited liability company with a principal place of business at 980 Hammond Drive, Atlanta, Georgia 30328. 3. Defendant 1-800-Flowers.com, Inc. is a Delaware Corporation with its principle place of business at One Old County Road, Carle Place, New York 11514. 2 Case 1:20-cv-02405-SCJ Document 1 Filed 06/04/20 Page 3 of 37 4. Defendant 800-Flowers, Inc. is a New York corporation with its principle place of business at One Old Country Road, Carle Place, New York 11514. 5. Certain subsidiaries of 1-800-Flowers.com are registered to do business in Georgia, including Flowerama of America, Inc. (“Flowerama”). On information and belief, the 18F Defendants conduct business in Georgia through Flowerama, and they can be served by serving Flowerama’s registered agent, C T Corporation System, 289 S Culver St, Lawrenceville, GA, 30046-4805. Jurisdiction and Venue 6. This Court has jurisdiction over this action under 15 U.S.C. § 1121, 28 U.S.C. § 1331, 28 U.S.C. § 1338(a), and 28 U.S.C. § 1367. 7. This Court has subject matter jurisdiction under 28 U.S.C. §§ 1331 and 1338 because Plaintiffs assert claims of trademark infringement, false designation of origin, and dilution arising under 15 U.S.C. §§1114, 1125(a), and 1125(c). 3 Case 1:20-cv-02405-SCJ Document 1 Filed 06/04/20 Page 4 of 37 8. This Court has supplemental jurisdiction over the claims in this complaint that arise under the laws of the State of Georgia pursuant to 28 U.S.C. §1367(a) because the state law claims are so related to the federal law claims that they form a part of the same case or controversy and derive from a common nucleus of operative facts. 9. This Court has personal jurisdiction over Edible IP, LLC and Edible Arrangements, LLC because by virtue of the filing of this Complaint, they consent to its jurisdiction. 10. 1-800-Flowers.com, Inc. and 800-Flowers, Inc. are subject to personal jurisdiction in this district because they advertise, solicit clients, and conduct continuous, systemic, and routine business in the state of Georgia and within this district, subjecting them to personal jurisdiction in this district. 11. Venue properly lies in this district pursuant to 28 U.S.C. § 1391(b)(1), (c) and (d) because Plaintiffs are headquartered in this district and suffered damage here. Defendants regularly engage in business in this judicial district, have 4 Case 1:20-cv-02405-SCJ Document 1 Filed 06/04/20 Page 5 of 37 registered agents here, and their contacts are sufficient to subject them to personal jurisdiction here. Edible Arrangements Background 12. Edible Arrangements LLC is the successful franchisor of stores offering fresh-cut fruit products, and it is best known for its artistically-designed fresh fruit products evocative of floral designs and its dipped fruit products. These highly- regarded products are available through an extensive network of franchises throughout the United States and abroad, and through its website, its call center, the Internet, and a handful of affiliate-owned stores. 13. Edible IP, LLC is the owner and licensor of, among other things, the various trademarks, trade dress, domain names, copyrights, and other intellectual property used and associated with the famous EDIBLE ARRANGEMENTS business and brand, as set forth in greater detail below. Edible IP, LLC licenses these intellectual property assets to Edible Arrangements, LLC for use and sublicensing through Edible Arrangements, LLC’s franchise system and websites. 5 Case 1:20-cv-02405-SCJ Document 1 Filed 06/04/20 Page 6 of 37 14. Tariq Farid founded Edible Arrangements in what has become a famous American success story. Mr. Farid emigrated from Pakistan when he was twelve years old. Beginning when he was only sixteen, Mr. Farid purchased his first flower shop. Within several years he grew his business to four locations. 15. Then came his entrepreneurial breakthrough: Mr. Farid developed a unique marketing program of providing floral arrangements made from fresh cut fruit instead of flowers. The fresh fruit is cut and sculpted to look like floral designs. 16. In 1999, Mr. Farid opened the first “Edible Arrangements®” store, through which he introduced his unique cut fruit products. 17. The Edible Arrangements brand and business grew enormously. Two years after opening his first store, Mr. Farid introduced Edible Arrangements franchises. And only three years after launching the first franchise, Entrepreneur Magazine recognized Edible Arrangements in the top 500 franchises in the United States. 6 Case 1:20-cv-02405-SCJ Document 1 Filed 06/04/20 Page 7 of 37 18. By 2006, there were 500 Edible Arrangements franchises, and by 2011 there were 1,000. Today, there are almost 1,200 Edible Arrangements stores worldwide, with more than 1,100 stores located throughout the United States. In Georgia alone, there are 42 locations. In 2017, there were almost 175,000 Edible Arrangements deliveries in Georgia, and 215,000 Edible Arrangements customers live here. 19. Edible Arrangements’ success has been continuously recognized by the business media. For example, Edible Arrangements ranked 9th on the 2011 Forbes list of top “franchises to start”; was named one of the “Top 100 Internet Retailers” by Internet Retailer magazine; was 38th on Entrepreneur Magazine’s 2017 Entrepreneur Franchise 500; and was ranked 3rd on Inc. Magazine’s list of top food and beverage companies. Most recently, the Franchise Times ranked Edible Arrangements number 128 in the list of the “Top 200 Franchises.” 20. Today, Edible Arrangements’ system-wide revenue exceeds half a billion dollars annually. Edible Arrangements’ success is a direct result of its 7 Case 1:20-cv-02405-SCJ Document 1 Filed 06/04/20 Page 8 of 37 commitment to providing a consistently high-quality and beautifully-designed product that consumers recognize as Edible Arrangements, as well as its marketing and promotion of the famous EDIBLE ARRANGEMENTS trademark and brand. 21. Edible Arrangement’s franchisees share in the commitment to consistently deliver high-quality, beautifully designed products to consumers that are instantly recognizable as an Edible Arrangements product offered under the famous EDIBLE ARRANGEMENTS trademarks and brand. 22. Any consumer misperception or confusion as to the affiliation of Edible Arrangements or its products with competitors or their products will irreparably damage Plaintiffs’ valuable brand and goodwill, as well as that of the franchisees, who devote significant personal resources to running their shops. Edible IP’s Trademarks 23. Edible IP owns a stable of extremely well-known marks that the public uses to identify and distinguish Edible Arrangements’ goods in the marketplace. 8 Case 1:20-cv-02405-SCJ Document 1 Filed 06/04/20 Page 9 of 37 24. Of significant importance to Plaintiffs and the Edible Arrangements’ franchise network is a family of trademarks and service marks comprising or containing the terms EDIBLE or EDIBLE ARRANGEMENTS, either alone or with other words and/or designs (collectively, the “EDIBLE Marks”), which serve as the banner of quality that identifies and distinguishes Edible Arrangements’ goods and services in the marketplace. 25. Primary among these EDIBLE Marks are the famous trade names, trademarks, and service marks “EDIBLE” (the “EDIBLE Mark”) and “EDIBLE ARRANGEMENTS” (the “EDIBLE ARRANGEMENTS Mark”). 26. The EDIBLE Mark, covered by Registration No. 4,319,940, is incontestable pursuant to the provisions of the Federal Trademark Act of 1946, as amended, 15 U.S.C. § 1051 et seq. (the “Lanham Act”), as is the EDIBLE Mark and Logo, Reg. No. 5513739, appearing below: . 9 Case 1:20-cv-02405-SCJ Document 1 Filed 06/04/20 Page 10 of 37 27. The EDIBLE ARRANGEMENTS Mark, covered by Registration Nos. 2,934,715 and 3,844,160, among others, is also incontestable pursuant to the provisions of Lanham Act, as is the EDIBLE ARRANGEMENTS Mark and Logo, Reg. Nos. 3,141,566 and 3,844,161, appearing below: 28. The EDIBLE Marks, including EDIBLE, the EDIBLE logo, EDIBLE ARRANGEMENTS and the EDIBLE ARRANGEMENTS Mark and Logo, are broadly recognized by the general consuming public as identifying Edible Arrangements and its products and services. Edible Arrangements’ branding is widely suffused with references to and displays of these famous marks.